Mid-Day ETF Update: ETFs, Stocks Recoup Earlier Losses With Investors Optimistic for Moderate Tapering By Fed


Active broad-market exchange-traded funds in Tuesday's regular session:

SPDR S&P 500 ETF Trust ( SPY ): +0.35%, near 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): -0.07%

iShares MSCI Japan Index ( EWJ ): -0.55%

iPath S&P 500 VIX Short Term Futures ( VXX ): -1.1%, near 52-week lows

Market Vectors Gold Miners ( GDX ): +1.3%

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV and others, have turned slightly firmer. Actively traded PowerShares QQQ (QQQ) is up 0.7% and near 52 week highs.

U.S. stocks are also seeing some renewed gains while the Street awaits the conclusion Wednesday of the Federal Open Market Committee two-day meeting which started today. Investors are hoping that the committee introduces moderate tapering on the Fed's bond-buying program. The committee's report, as well as updated economic projections, will be released Wednesday 2 pm ET. Afterwards, Fed Chair Ben Bernanke will hold a news conference at 2:30 pm ET. Meanwhile, the Congressional Budget Office warned that the U.S. national debt has reached its highest level since around World War II, now at 73% of gross domestic product.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was up 0.2%, nearer 52-week highs. Direxion Daily Financial Bull 3X shares (FAS) was up 0.6%. Its bearish counterpart, FAZ, was down 0.7%.

Among financial stocks, Lloyds Banking Group ADRs (LYG) were down near 3% from near 52-week highs following multiple reports out of Europe that the U.K. government sold a 6% stake for 3.2 billion pounds ($5.1 billion).

Technology -

Technology Select Sector SPDR ETF (XLK) was up 0.6%, just below its 52-week high. iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology-Software Index (IGV) were both firmer; iShares S&P North American Technology ETF (IGM) was also up, 0.6% to near 52 week highs.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were firmer, at the higher end of their 52-week ranges. SPDR S&P International Technology Sector ETF (IPK) was flat.

In sector news, EZchip Semiconductor Ltd (EZCH) was up 5% after it earlier said that to the best of its knowledge Cisco Systems (CSCO) intends to continue its NP-5 chip in all key platforms that use the NP-4 chip today. Investors have pummelled EZChip's shares following Cisco's launch of its new nPower X1 network processor on Sept. 12, which lead to speculation Cisco would scale back its use of EZChip products.

Energy -

Dow Jones U.S. Energy Fund (IYE) was up 0.65%, touching a 52-week high of $47.92. Energy Select Sector SPDR (XLE) was up 0.6% near its new 52-week high.

In sector news, Triangle Petroleum (TPLM) was up 4.3% and has posted a fresh 52 week high after the company said it signed definitive agreements with joint venture partner First Reserve's Energy Infrastructure Fund (FREIF) to expand the Caliber Midstream Partners, L.P. midstream and infrastructure system.

Commodities -

Crude was down 1.17%, and United States Oil Fund (USO) was down 1.15%. Natural gas was flat, and United States Natural Gas Fund (UNG) was up 0.20%.

Gold was down 1.22%, but above session lows, and the SPDR Gold Trust (GLD) has turned slightly positive. Silver was down 1.35%, also up from the day's lows; iShares Silver Trust (SLV) was up 0.2%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was up 0.5%; other consumer ETFs Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were also firmer.

In sector news, Coty (COTY) has lost early gains and is now down 5.7% and has touched 52 week lows after it earlier reported its fiscal Q4 results.

Power Play -

Healthcare -

Health Care SPDR (XLV) was down 0.15%, but near 52-week highs; Vanguard Health Care ETF (VHT), iShares Dow Jones US Healthcare (IYH) and Biotech ETF iShares NASDAQ Biotechnology Index (IBB) were also all weaker BUT also trading at the higher end of their 52-week ranges.

In corporate news, KYTHERA Biopharmaceuticals Inc. (KYTH) was up near 26%, having earlier hit a new 52-week high of $43.25 after the company reported that its ATX-101 REFINE-1 and REFINE-2 Phase 3 trials met all primary and secondary endpoints. These two pivotal Phase 3 trials were conducted to compare the efficacy and safety of a 2 mg/cm2 dose of ATX-101 versus placebo for the reduction of submental fat, which commonly presents as a double chin. If approved, ATX-101 will be a first-in-class submental contouring injectable drug. Goldman Sachs also initiated coverage of of KYTH with a Neutral rating, setting a price target of $37.00.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: EEM , EWJ , GDX , SPY , VXX

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